Buffett, 3G Capital Buying Heinz for $28B

PITTSBURGH — Berkshire Hathaway and 3G Capital have reached an agreement to acquire H.J. Heinz Co. in a transaction valued at $28 billion, Heinz said Thursday. It is being reported as the biggest deal ever in the food industry.

Heinz shareholders will receive $72.50 in cash per share of common stock — a 20% premium to Heinz’s closing share price of $60.48 Wednesday — and the buyers will also assume Heinz’s outstanding debt. Heinz will continue to be headquartered in Pittsburgh.

“Heinz has strong, sustainable growth potential based on high-quality standards, continuous innovation, excellent management and great-tasting products,” said Warren Buffett, chairman and CEO of Berkshire Hathaway. “Their global success is a testament to the power of investing behind strong brand equities and the strength of their management team and processes. We are very pleased to be a part of this partnership.”

“The Heinz brand is one of the most respected brands in the global food industry and this historic transaction provides tremendous value to Heinz shareholders,” said William R. Johnson, chairman, president and CEO of Heinz. “We look forward to partnering with Berkshire Hathaway and 3G Capital, both greatly respected investors, in what will be an exciting new chapter in the history of Heinz.”

Alex Behring, managing partner at 3G Capital, said, “We have great respect for the Heinz brands and the strong business that management and its employees operate around the world. … We fully recognize Heinz’s value and heritage and look forward to working together with Heinz’s employees, suppliers and customers as we invest in and support the company’s ongoing global growth efforts.”

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